Range to watch: S&P 500

S&P 500, daily

The purple line is where the 200 Week MA is as of November 15th, 2010.

The Technicals all are showing momentum down, however, the ADX hasn't had a sell signal yet.  Also note that the volume was not overly strong today, but recently Mondays are generally lighter volume than the rest of the week.

I have been out of the stock market as I haven't had the time to fully digest the current situation.

Here is some recent fundamental news out from the Euro Zone.



Bloomberg: Ireland Economic News

The MACD line has just crossed into negative territory.  Which means that this could have turned bearish.  With bailout talks in the works for Ireland, it will be interesting to see how it plays out.


As I have been on the sidelines for a couple of days, I thought I would setup a trade using a Buy-Stop Order.  I am not 100% convinced this market has peaked.  One major reason is the GM IPO this Thursday, where there is so much vested interest in seeing the markets move up that day.  They increased there share price to ~$32-$33.

I am using a Buy-Stop order as I will not be able to monitor the markets this week, and we are currently at some major market levels.  The ETF is SDS which is a 2x Inverse of S&P500.

The purple line is at the same percentage adjusted level as on the S&P 500 chart at the top of this post (26.88), which is the 200 Week Moving average on the S&P 500.  The green line which is at 27.05, is where I see the most reasonable entry on the SDS chart.  My Buy-Stop order will be at 27.06.
The light red light is where I see potential resistance on the SDS chart specifically as it is the low of the last major pull back.  The S&P500 does not have such as level of resistance as it has already dropped lower than the previous major high back in May.

I will probably add to this if the market continues to head south.  However, I do believe a small rally might be coming which will provide a better entry.